Question
One Deposit: Exercise Anna deposits D=750 EUR in her saving account with i=4,1% interest, compound two-monthly. (a) Calculate the balance at the end of the
One Deposit: Exercise Anna deposits D=750 EUR in her saving account with i=4,1% interest, compound two-monthly.
(a) Calculate the balance at the end of the third year.
(b) How much must she deposit to reach 1200 EUR after four years?
(c) How long does she need to wait until reaching the desired balance of 1100 EUR with the deposit of 900 EUR?
(d) How much interest must the bank pay to reach 1000 EUR with a deposit of 850 EUR within three years?
(e) Calculate the effective interest rate.
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
